Mediaset España (BME: TL5) is a Spanish private media company, the parent company of which is the Italian Mediaset S.p.A. (BIT: MS). Mediaset España’s main divisions are free-to-watch TV and film production. After the company’s stock took a beating at the end of February and the beginning of March 2020, the price continues to grind higher. TL5 has already managed to overshoot the 2020 high this year in the beginning of May but drifted back below that high a few days after. It seems that new investors could be eying the stock, as it continues to show strength. As we understand, the company was one of the beneficiaries of the lockdowns during the pandemic, as people, especially the older generation, referred to watching traditional TV. Although restrictions are getting lifted and people are allowed to spend less time at home, this doesn’t necessarily mean that demand for Mediaset España’s services would fall. On the contrary, the company would be able to utilise the freedom by creating new content, in order to attract viewers back to their screens. TV advertisements might pick up the pace, as other businesses are opening up again.
From the technical side, the stock continues to climb higher, while balancing above a short-term tentative upside line drawn from the low of April 27th. At the same time, we are seeing a break above the 5.58 barrier, marked by Friday’s high, which could potentially attract more buying-interest. As long as the share price continues to trade above the aforementioned upside line, we will stay positive with the near-term outlook.
Given that the stock broke above the 5.58 hurdle, this may have caught the eye of more buyers, who could start jumping into the action. TL5 might then drift to the current highest point of May, at 5.81, where a temporary hold-up may occur. The share price may correct back down a bit, however, if it continues to trade above the previously-mentioned upside line, another push higher could be possible. If then the stock is able to overcome the 5.81 obstacle, this would confirm a forthcoming higher high, potentially setting the stage for a move to the 6.20 level, marked by the highest point of November 2019.
At the time of writing, the RSI and the MACD are both pointing higher. Also, the RSI is above 50 and the MACD is above zero, but coincides with its trigger line. In a way, the two oscillators support the above-mentioned scenario, as they show positive price momentum.
Alternatively, if the stock breaks the aforementioned upside line and then falls below the 5.35 hurdle, marked by yesterday’s low, that may signal a change in the short-term trend. New buyers might get halted from entering the arena for a while and TL5 could drop to the low of last week, at 5.21. If the slide continues, the next possible target may be at 4.87, marked by the inside swing high of April 16th.
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